Sort out taxes
Information on the tax obligations and tasks that may be needed when acting as an executor of an estate.
Taxes and tasks when acting as an executor
The executor of an estate will often need to submit tax returns on behalf of the person that has died.
Depending on how long it takes to collect and distribute assets, you might need to submit tax returns on behalf of the estate.
If you are both an executor and a beneficiary, you might need to declare the assets you receive as part of your tax return.
There may need to be co-operation with family members if a testamentary trust is established under a valid will.
Submitting a tax return for someone who has died
Executors of an estate are responsible for submitting the final tax return for someone who has died.
Before you lodge the tax return, you will need to notify the Australian Taxation Office (ATO) of their death.
You may need to lodge:
a 'date of death tax return' on behalf of the person who has died (or tell the ATO that a tax return is not necessary)
tax returns for previous years.
You can only lodge tax returns for someone who has died using a paper tax return.
You can find a checklist of how to manage tax for a deceased estate at the ATO.
If you are a beneficiary
If you are a beneficiary of the estate, you might have some tax obligations. The Australian Tax Office (ATO) provides advice for beneficiaries on:
- receiving super benefits
- receiving assets
- earning income
- beneficiaries presently entitled but under a legal disability
- non-resident beneficiaries
Learn more about tax returns for beneficiaries of a deceased estate at the ATO.
When there is a trust
A testamentary trust is a trust established under a valid will, but it's not the same trust as the deceased estate.
Depending on who is appointed as the trustee and appointor of the testamentary trust, there may need to be a high level of co-operation between family members.
This ensures that necessary tax, financial and other information is shared for the trust to operate effectively.
The Australian Taxation Office has more information about testamentary trusts.